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Chief Telecom Inc. (6561) AI Stock Analysis

TW:6561

Chief Telecom Inc.

(TPEx:6561)

Select Model
Rating:77Outperform
Price Target:TWD 383.00▲(15.71% Upside)
Action:initiatedcoverage
Date:11/09/26

Chief Telecom scores well on the strength of its financial profile: best-in-class margins, rising returns on equity near 37%, and robust operating cash flow that fully backs reported earnings, with free cash flow recovering sharply in the latest period. Supporting the score, the stock trades above all key moving averages with positive MACD momentum and low volatility, while a 4.24% dividend yield and a moderate 21.4x P/E offer a fair income-oriented valuation. The main constraints are decelerating revenue growth, flattening sequential earnings, and volatile leverage tied to lumpy data-centre capital spending that could compress free cash flow in a future build-out cycle.

Positive Factors
High ProfitabilityThe company’s high gross and net margins indicate meaningful profitability from its telecommunications and network services base. This provides an earnings cushion, supports reinvestment in infrastructure and services, and can help sustain returns through moderate changes in revenue growth.
Negative Factors
Slower Recent Revenue GrowthAlthough revenue has expanded over several years, the recent growth rate has moderated to a modest level. Slower top-line expansion may limit operating leverage, reduce the pace of earnings growth, and make sustained improvement more dependent on maintaining high margins.

Chief Telecom Inc. (6561) vs. SPDR S&P 500 ETF (SPY)

-15%-10%-5%0%5%10%15%20%TW:6561-8.00%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 25.63B
Dividend Yield
4.32%
Average Volume (3M)
92.47K
Price to Earnings (P/E)
20.9
Beta (1Y)
0.33
Revenue Growth
-0.61%
EPS Growth
0.63%
Country
TW
Employees
151
Sector
General
Sector Strength
55
Industry
Telecommunications Services

Chief Telecom Inc. Business Overview & Revenue Model

Company Description

Chief Telecom Inc. is a telecommunications provider offering a broad spectrum of services to clients in Taiwan and across the globe. Its offerings include Point-of-Presence (POP) sites and comprehensive Internet Data Center (IDC) solutions. These IDC...

Chief Telecom Inc. Financial Statement Overview

Summary

Chief Telecom combines steady revenue growth (NT$2.80bn in 2021 to NT$4.03bn TTM) with exceptional and still-expanding margins — 49.8% gross, 39.4% operating and 30.5% net — plus return on equity near 36.5%. Operating cash flow of NT$1.57bn comfortably exceeds net income, confirming high earnings quality, and free cash flow rebounded strongly to NT$1.27bn TTM after the 2024 capex-driven shortfall. Offsetting this, growth has cooled to the mid-single digits (3.6% TTM) with earnings flattening sequentially, leverage has been volatile (debt-to-equity spiked to 1.26 at end-2025 before easing to 0.64), and equity has drifted lower, leaving a thinner cushion to fund capital-intensive expansion.

Income Statement

88Very Positive

Balance Sheet

71Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.03B3.94B3.79B3.24B3.08B2.80B
Gross Profit2.00B2.07B1.80B1.59B1.47B1.26B
EBITDA2.03B1.93B1.60B1.37B1.25B1.07B
Net Income1.23B1.23B1.08B921.11M836.81M686.57M
Balance Sheet
Total Assets6.83B7.42B7.57B7.14B5.75B5.49B
Cash, Cash Equivalents and Short-Term Investments297.02M889.74M1.26B2.06B2.48B2.66B
Total Debt2.29B4.59B2.38B2.39B1.72B1.82B
Total Liabilities3.22B3.78B3.67B3.52B2.42B2.40B
Stockholders Equity3.59B3.63B3.90B3.61B3.31B3.08B
Cash Flow
Free Cash Flow1.27B821.80M-152.78M314.81M472.72M527.77M
Operating Cash Flow1.57B1.55B1.41B1.08B1.07B887.23M
Investing Cash Flow-287.30M-736.58M-1.39B-724.98M954.31M-105.40M
Financing Cash Flow-1.59B-1.20B-760.61M-735.35M-695.90M-674.02M

Chief Telecom Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:6561 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:6561TW:656177OutperformTWD 26.04B20.91―4.32%-0.61%0.63%
TW:3029TW:302972OutperformTWD 20.79B17.94―4.07%――
TW:3596TW:359666NeutralTWD 29.87B10.54―6.47%4.32%5.74%
TW:8932TW:893266NeutralTWD 34.00B36.56―0.92%16.31%12.49%
TW:3693TW:369359NeutralTWD 26.65B45.88―1.17%-20.76%-34.98%
TW:6166TW:616656NeutralTWD 19.80B16.47―1.28%31.89%141.45%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%150%TW:6561TW:3029TW:3596TW:3693TW:6166TW:8932Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:6561 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:6561Chief Telecom Inc.331.00-24.95-7.01%
TW:3029Zero One Technology Co., Ltd.135.0024.4122.07%
TW:3596Arcadyan Technology Corporation139.00-40.42-22.53%
TW:3693AIC, Inc.682.00347.38103.82%
TW:6166Adlink Technology Inc.93.4035.8262.20%
TW:8932Wiselink Co Ltd.78.007.1910.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026